SGX-DC’s prefunded resources short of stressed losses 37 days in Q2
Latest round of shortfalls linked to double-member default lay bare lack of Cover 2 requirement
SGX-DC, one of the two clearing arms of the Singapore Exchange, recorded 37 days during the second quarter when its default fund was insufficient to cover its estimated largest stress loss caused by a double-member default.
In those instances, the central counterparty’s (CCP) prefunded default resources fell short of what was required to backstop the simultaneous default of two clearing members and their affiliates under extreme but plausible market conditions.
The latest figure adds to the
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